THE VICE PRESIDENT: Well, thank you very much, ladies and gentlemen,
friends and fellow citizens. It's good to see all of you this morning.
I notice I always get a warm welcome when I come to Arizona in August.
(Laughter.) But wherever you and I have met -- whether it was in
Indianapolis last fall, or in other venues over the years -- I've always
received a warm welcome from the American Legion. And I appreciate it,
and I'm honored to be with you once again.

Let me thank your national commander, Marty Conatser, for the invitation
to join all of you today. And I also want to thank Robert Spanogle,
national adjutant; Jan Pulvermacher-Ryan, national president of the
Auxiliary; Pam Gilley, national secretary of the Auxiliary. I also want
to thank national and department officers and delegates, Legionnaires,
Auxiliary members, Sons of the American Legion, and guests who have come
to Phoenix from all over the world. Your commitment to the Legion has
made this 90th National Convention a huge success. It's great to be
part of it, and I bring respect and good wishes to all of you from the
President of the United States, George W. Bush. (Applause.)

This hall is filled with distinguished Americans. You answered the
nation's call -- and when you returned from duty, you kept up the habit
of service by joining the American Legion. The Legion serves America by
leading on important issues, from health care and education, to
employment opportunities for veterans, to homeland security, to a better
quality of life for our military families. You proudly wear an emblem
that "stands for God and Country, and the highest rights of man." You
speak up for liberty and democracy, because you know what those ideals
mean -- and because you know the price that's been paid for our
freedoms. Members of the American Legion stand firm for protecting our
country's flag, and for defending the right of every American to pledge
allegiance to one nation under God. (Applause.)

We also count on the American Legion to be an advocate for the nation's
veterans. Our administration has worked with you and have benefited
greatly from your advice. President Bush and I came into office
determined to raise the quality of veterans' health care, to get more
money to the VA, and to trim the backlog in processing disability
claims. Aided by your strong voice on Capitol Hill, we've been able to
make a big difference for veterans and their families.

The President's budget for this year asks for nearly $94 billion for the
VA -- almost double what it was when we took office. And more than $5
billion -- (applause) -- more than $5 billion has been committed to new
and expanded VA facilities across the country.

To expand educational opportunities for veterans and their families,
President Bush was proud this year to sign a G.I. Bill for the 21st
century. (Applause.) To provide better care for wounded warriors,
we've implemented recommendations from Senator Bob Dole and Secretary
Donna Shalala. And the President fixed an old problem for
combat-injured and severely disabled veterans, when he signed concurrent
receipt legislation -- making him the first President in more than a
hundred years to do so. (Applause.)

For all the progress that's been made for veterans over these last seven
and a half years, we're not easing up in the final months of our
administration. We've got a fine leader at the VA, Dr. James Peake, who
is the first physician and first general to serve as Secretary. We
realize bureaucracies always need to be pushed -- and a retired
three-star is a good one for doing the pushing.

President Bush said a long time ago that he intended to sprint to the
finish line, and all of us who work for him are going to stay hard at it
until our last day in office. I'll be putting on some miles myself next
week, with an international trip that includes a stop in Tbilisi, the
capital city of Georgia. That young democracy has been subjected to an
unjustified assault, and the international community has joined in
condemning Russia's invasion of a sovereign, democratic neighbor and its
recognition of Georgian regions of South Ossetia and Abkhazia.

America has sent in large amounts of humanitarian aid, along with a
clear message to the people of Georgia: We support their democracy, and
we'll work with our allies to ensure Georgia's territorial integrity as
a free and independent nation. The Georgian people won their freedom
after years of tyranny, and they can count on the friendship of the
United States. (Applause.)

Come January, President Bush and I will turn our duties over to others.
I realize the Annual Convention of the American Legion is not a
political event, and I will not speak this morning about the
presidential campaign. (Applause.) But in present company, there's one
thing I have to say. I am proud and delighted that next week, your
fellow Legionnaire, Senator John McCain of Arizona, will be nominated
for President of the United States. (Applause.)

On my final visit to the American Legion as Vice President, I also want
to thank each of you for the unstinting support you are giving to the
men and women serving in our military today. I know it means a lot to
those serving far away, and to those you've welcomed home from their
deployments. We blessed -- we are blessed with the finest military any
nation has ever fielded, and may we never take them or their families
for granted. (Applause.)

These are busy times for the nation's defenders, because we're at war
with an enemy that hit us first, hit us hard, and has ambitions to cause
ever greater destruction inside our country. In two weeks, we'll mark
another anniversary of September 11th, 2001 -- and we'll recall the
attacks that took 3,000 lives and did such great harm to our nation.
We'll be reminded, once again, of the kind of adversaries that we face
in this war. These extremists don't wear a uniform or recognize any
standard of warfare. They hate our country; they are determined to kill
as many Americans as they can; and they are fully prepared to kill
themselves in the process. Simply stated, an extremist cabal has turned
its guns on the United States and the civilized world. For the sake of
our freedom and security, we must not relent until this enemy is
destroyed. (Applause.)

In light of what happened in 2001, and considering what we've learned
since about the enemy's operations and intentions, it's all the more
remarkable that America has not had another 9/11. The fact that we've
been safe this long is not an accident of history or just a stroke of
luck. It is an achievement. We've undertaken a broad-based, unyielding
effort to protect this country -- an effort set in motion and led by the
President of the United States, and carried out by investigators,
security professionals, intelligence operatives, and military personnel.
No one can guarantee the enemy won't make another strike on our homeland
-- indeed, that is their objective. But one thing is certain: We will
not sit and wait to be hit again. (Applause.)

There was a time when terrorist attacks were treated mainly as an issue
of law enforcement -- where you investigated the incident, arrest the
bad guys, try them, and put them in jail. The first attack on the World
Trade Center, back in 1993, resulted in indictments and prison terms for
the major perpetrators. But that did not remove the danger to America.
Terrorist attacks against American interests continued throughout the
'90s, from the killing of servicemen in Riyadh and the Khobar Towers, to
the destruction of our embassies in Tanzania and Kenya, to the bombing
of the USS Cole in 2000.

Outside a few limited strikes, the terrorists never paid a real price
for any of this. They believed they could strike us and get away with
it. And they grew more confident that if they hit Americans hard
enough, the United States would change our policies, abandon our
commitments, and run away. They took to the examples of Beirut in 1983
and Somalia in 1993 -- when terrorists killed Americans and we
thereafter withdrew our forces.

September 11th changed everything. We saw the kind of destruction that
could be caused by 19 men armed with box cutters and boarding passes --
19 men who were, in fact, part of an international network of terror.
We had to contemplate, as well, their broader goals -- to acquire more
deadly weapons; to gain new safe havens to wage further attacks; to
spread an ideology of hatred and resentment across the broader Middle
East and beyond.

After 9/11, it was clear that this mixture of ideology and violence,
operating across borders and in secret, added up to more than just a law
enforcement problem. It was, and is, a strategic threat to the United
States, and must be dealt with systematically. (Applause.) So
President Bush made a decision to marshal all the elements of our
national power to confront the extremists, to deny them safe haven, and
above all to deny them the means to wage catastrophic attacks against
the United States. He also made clear that in the post-9/11 era,
regimes that harbor terrorists and defy the demands of the civilized
world should be held to account -- before it's too late.

Having been attacked at home, we took decisive steps to make the country
less vulnerable to attack, and to improve our ability to respond to a
national emergency. We set up the Department of Homeland Security and a
new counterterrorism center. We shifted the FBI's focus from
investigating terrorist attacks to preventing them. The President
signed the Patriot Act, which took down the legal and bureaucratic wall
that kept law enforcement and intelligence authorities from sharing
vital information.

We also stepped up intelligence operations -- to better figure out the
movements of the enemy, the extent of their network, the location of the
cells, the plans they're making, the methods they use, the targets they
want to hit. Information of this kind is the hardest to obtain, but
it's worth the effort in terms of the plots that are averted and the
lives that have been saved. So our government has taken careful but
urgent steps to monitor the communications of enemies at large, and to
get information from the ones that we have apprehended.

We instituted the Terrorist Surveillance Program, to monitor
international terrorist-related communications. If somebody inside the
United States is talking to a terrorist overseas, we need to know about
it so we can protect the American people. (Applause.)

To defend American lives, we went to work getting information from the
terrorists themselves. One way we've done that is through
interrogations. And here it's important for Americans to understand
what we are doing, why we are doing it, and what we are not doing.
There's been a good deal of misinformation about the interrogation
program run by the CIA. Many unfair and uninformed statements have been
made about America's intentions and about the conduct of our
intelligence officers. A lot of details are, understandably,
classified. Yet the basic facts are these. A small number of
high-value detainees have gone through a special program run by the CIA.
The CIA program involves tough customers and tough interrogations -- but
it is entirely legal and proper. The procedures are designed to be safe
in full compliance with this nation's laws and treaty obligations.
They've been carefully reviewed by the Department of Justice. The
program is run by highly trained professionals who understand their
obligations under the law. And, as the President has made clear, the
program has uncovered a wealth of information that has foiled specific
attacks -- information that has on numerous occasions made the
difference between life and death. Intelligence personnel who have
gathered that information have done a great service to our country.
They are protecting Americans' lives, and they deserve the nation's
gratitude. (Applause.)

No nation in the world takes human rights more seriously than the United
States. The policies of our country comply with our law, which
prohibits torture. We're proud of our country and what it stands for.
We expect all who serve America to conduct themselves with honor. And
we enforce the rules. Some years ago, abuses were committed at Abu
Ghraib prison -- conduct that was not authorized and that did violate
the law. When those abuses came to light, Americans were rightly
outraged. Those who violated the law were arrested, prosecuted and
punished, as justice demanded. The misdeeds of a few should never be
used to slander the good and decent Americans who go to work every day
to keep this country safe. (Applause.)

All of these measures -- homeland security, terror surveillance, and
high-value interrogation -- have been absolutely essential to
confronting the strategic threat to our country. And the same is true
for our ongoing military operations in Afghanistan and Iraq. The war on
terror is not a figure of speech. On two fields of battle, it is a
shooting war. The only way to win is by going on the offensive -- and
that's exactly what we're doing.

In both countries, we confronted tyrants -- (applause) -- in both
countries we confronted tyrants and removed them from power. And we're
keeping our promise to support these democracies, and to help them build
up their own defense forces, and to prevent terrorists from regaining a
foothold in that critical region of the world.

In Afghanistan, America leads a coalition that includes every member of
the NATO Alliance. The Taliban is still waging attacks against the
Karzai government and against our forces. But our coalition remains
strong, and our troops are facing the enemy with skill and toughness.
Seven years ago, we rescued the Afghan people and lifted their country
out of the dark ages. Today they have an elected government, a rising
economy, and schools that educate both boys and girls. Afghanistan is
rebuilding itself, and it's become an ally in the war on terror. The
Afghan people stand with us, and we are standing with them.

We are standing with the Iraqi people as well. And I'm pleased to
report that the troop surge we began last year has been an enormous
success. (Applause.) Violence in the country is down dramatically
compared to the first part of 2007. Sectarian killings and civilian
deaths have fallen dramatically. And the casualty rate among American
forces last month was the lowest in the history of that conflict.

Thanks to our new strategy in Iraq, led by General Dave Petraeus, the
Iraqi people now live in greater security than they have in years.
We're gathering better intelligence, because now the Iraqis are less
afraid to pass along tips about where enemy fighters are hiding, and
where they keep their weapons. The surge has given Iraq's elected
leaders the breathing room to pass new reforms, and they've stepped up
to their responsibilities. At the same time, we're -- continued to
train Iraq's security forces, and those forces are able to lead more and
more operations on their own. And al Qaeda, the main enemy in Iraq, is
substantially degraded, running out of sanctuaries, losing the fight.

We're going to keep our commitments in Afghanistan and Iraq, as we have
pledged to do. The military aspect of the war on terror has been a
hard-fought, difficult, challenging enterprise. So difficult, in fact,
that many politicians -- including some who voted to send the troops
into battle -- have decided to quit. Last year, with the entire Iraqi
operation in the balance, we had to fend off multiple threats from the
Congress. There were threats to cut off all funding for the troops,
threats to force an immediate withdrawal from Iraq, consequences be
damned, and threats to mandate a pullout by strict, short, and
completely arbitrary timelines. The troop surge faced intense
opposition from members of Congress who said it was doomed to fail. The
Democratic leader of the Senate -- an early supporter of the war --
abandoned that support and even declared the cause to be lost.

President Bush stood firm, along with a number of notably courageous
members of Congress, some of them from Arizona. They knew a surge of
operations was our big chance to get things right. They also knew that
success in Iraq mattered greatly to the future prospects for peace in
the Middle East, as well as having enormous impact on our own security.
For all these reasons, they knew that tyranny in Iraq was worth
defeating -- and democracy in Iraq worth defending.

We could have quit a year and a half ago -- and today Iraq would be in
chaos. Al Qaeda would probably control large segments of the country;
it probably would be a major safe haven for terrorists; and its people
would be suffering in ways we can scarcely imagine. America's
credibility would be in tatters, and the terrorists would be newly
emboldened. And everybody in Washington would be wondering just how we
were going to fix the problem in Iraq sometime down the road.
Fortunately, we've prevented that nightmare scenario -- and now it's
clear that the opponents of the troop surge were dead wrong.

Success in Iraq has allowed us to continue the President's policy of
return-on-success. We've reduced the length of combat tours from 15
months back down to 12. We've brought home all five of the combat
brigades and the three Marine units who were sent into Iraq as part of
the surge. Further troop movements will, as always, depend on what is
happening on the ground.

We recognize there are still difficult challenges ahead in Iraq and the
rest of the Middle East -- including the efforts by the radical regime
in Iran to develop technologies that would give it the capability to
produce nuclear weapons. No one should have any illusions about this.
Iran is the world's leading state sponsor of terrorism. Its leaders
have repeatedly called for the death of America and the extermination of
Israel. A nuclear-armed Iran would be a threat to our country's vital
interests. The United States remains focused on mobilizing friends and
allies to pressure the Iranian regime to accept a diplomatic solution,
to comply with the U.N. Security Council resolutions, and to abandon its
efforts to develop a nuclear weapons capability. Diplomacy will always
be our preferred course. But Iran must know that the United States is
determined to defend its interests, and that all options remain on the
table.

Whether in Afghanistan, Iraq, or Iran, the people of our military
understand what is at stake in the broader Middle East, and the
consequences it holds for the war on terror. A few months ago, during a
stay at Balad Air Base in Iraq, I participated in an awards ceremony,
and was given the chance to address several thousand of our troops. The
morale was high -- you could feel it as you stood there with them, and
you could hear it as they cheered comrades receiving battle decorations.
Most of all, I remember how strongly they applauded when I told them
that we're going to get the job done right -- so that another generation
of Americans doesn't have to come back and do it again. (Applause.)

At every stage, with all the changing fortunes of war, the members of
our military have given their jobs all that is in them. They've seized
the initiative; they have the guts and the determination to see the
matter through. Last month in Iraq, more than 1,200 Americans coming to
the end of their service obligation made the decision to re-enlist. On
the Fourth of July, General Petraeus swore them in during a ceremony at
Camp Victory. According to the sergeant major in Baghdad, it was the
largest re-enlistment ceremony since the advent of the all-volunteer
force. Our nation is grateful to each and every one of them.
(Applause.)

As many of you know, I had the honor of serving this country as
Secretary of Defense during the administration of former President Bush.
During those years, and in my current position, I've had no greater
privilege than the chance to work with members of the American Armed
Forces. I believe that if anyone lacks for inspiration in the war on
terror, they need look no farther than the men and women who do the
fighting. Whether it's on cold mountain peaks in Afghanistan or the hot
dusty streets of Iraq, they have been magnificent. And a new generation
of warriors is the next chapter of American ingenuity, bravery, and
valor. (Applause.)

I recently attended a ceremony at the White House honoring one of our
bravest -- an Army private from Pennsylvania named Ross McGinnis, who
was killed in Iraq in late 2006. Private McGinnis was in the gun turret
of a humvee patrolling Baghdad when an insurgent threw a grenade
directly at the vehicle. The grenade fell through the gunner's hatch
and landed inside. Private McGinnis shouted a warning, but the four men
inside had no way of escaping. Instead of leaping off the vehicle to
save himself, Private McGinnis dropped inside, covered the grenade with
his body, and absorbed the blast. In a split second, he saved four
lives and lost his own. And the four soldiers he saved were there in
June, when President Bush presented to Mr. and Mrs. Tom McGinnis the
Medal of Honor earned by their son -- who at age 19 proved himself to be
one of the bravest men in our history.

As President Bush said at that ceremony, "The day will come when the
mission has been completed, and the fighting is over, and freedom and
security have prevailed. America will never forget those who came
forward to bear the battle." (Applause.) With daily challenges
confronting us, and American boots on the ground 6,000 miles away, we
know there will be more fighting, and more sacrifices. But our men and
women are serving in a cause that is noble, necessary, and in the finest
tradition of America.

The United States was founded on the principles of liberty, justice, and
equality. We have served those principles, and sacrificed for them, to
the far corners of the earth. We have thrown back tyrants, stood watch
on the frontiers of freedom, and defended the weak against the violent.
We have brought hope and relief to peoples who thought they had lost
everything -- until the Americans arrived to save them.

We've done all this, not for glory or empire, but for freedom -- because
we know that the spread of freedom makes our world safer, and brings us
closer to the peace we all desire. In the process we've received more
than our share of criticism, and we can take it. The fact is this world
is a much better place because of the power, the influence, and the
values of the United States of America. (Applause.)

As citizens who have served in that cause, every member of the American
Legion can stand tall. You've earned a special place of respect in this
country. I count it a privilege to be in your company, and I lack the
words to express how much I've appreciated your friendship over these
many years. I'm proud of you, and I'm most grateful for your
hospitality this morning.